Question: A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of

A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of
1
,
0
0
0
units, an annual carrying cost of $
1
0
per unit, and a setup cost of $
4
0
0
.
They operate
5
0
weeks per year, and can produce
4
0
units per week. What is the best batch size for this item?

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